[Hanwha Life Expos?]② President Kim Dong-won, the Background of Acquiring Indonesia's 'Nobu Bank'

Connection with Repo Group CEO at Davos Forum
Proposal for Joint Partnership with Nobu Bank
Expansion from Banking to Insurance, Securities, and Asset Management

The significant role of Kim Dong-won, President of Hanwha Life and the second son of Kim Seung-yeon, Chairman of Hanwha Group, was a key factor behind Hanwha Life's rise as a global comprehensive financial group. Starting as the head of the Digital Team in the Group Management Planning Office in 2014, Kim has been receiving management training and was appointed Chief Global Officer (CGO) of Hanwha Life early last year, overseeing Hanwha Life's global business.

Hanwha Life's signing of the acquisition contract for Nobu Bank in Indonesia last April, marking the first time a domestic insurance company has entered the overseas banking sector, was also a result of Kim's extensive global network. Kim has attended the World Economic Forum (Davos Forum) six times, building connections with global leaders. He first met John Riadi, CEO of the RiFo Group, at the 2016 Davos Forum. Since then, they have maintained a steady relationship, discussing cooperation plans including last year's acquisition of RiFo General Insurance and this year's acquisition of Nobu Bank.

"Secure a 'Gateway' Bank in the Financial Industry"

Hanwha Life's acquisition of Nobu Bank was made possible by the Financial Services Commission's amendment of the Enforcement Decree of the Insurance Business Act this year, which significantly expanded the ownership scope of overseas subsidiaries by financial companies and eased regulations. According to a senior executive at Hanwha Life who played a leading role in the Nobu Bank acquisition, Kim had been planning a global business strategy with bank entry in mind years before the regulations were relaxed. Last year, Kim formed a task force (TF) by selecting 11 key personnel from the Global Strategy Office and Management Strategy Office to pursue the Nobu Bank acquisition. The TF is currently conducting local market research and working to pass the stringent approval procedures of domestic and foreign financial authorities.

Kim needed a bank because it serves as a gateway connecting financial companies and customers. In Indonesia and Vietnam, banks remain the core of the financial industry. It is easier to expand into insurance, securities, and asset management based on customers and data initially gathered by banks. Starting with entry into the Vietnamese insurance market in 2008 and gradually expanding to Southeast Asia, including Indonesia in 2012, the need for a bank has grown stronger. A Hanwha Life official explained, "In Korea, banks grew first during the economic growth period, and only after national income reached a certain level did insurance and securities follow. We judged that Southeast Asia is following a similar trend, so we decided to secure a bank."

The key to the successful acquisition of Nobu Bank was maintaining an 'equal partnership.' Kim proposed that even if Hanwha Life became the single largest shareholder of Nobu Bank, it would jointly manage the bank on equal terms with the major shareholder, RiFo Group. Once the acquisition is finalized after the final approval from the Indonesian Financial Services Authority (OJK), Hanwha Life, holding 40% of the shares, will have the authority to appoint three out of five executives of Nobu Bank. Kim actively conveyed his intention not to engage in unilateral management even in this situation, and RiFo Group reportedly opened up to Kim's attitude. A Hanwha Life official said, "Deciding to become a de facto joint management partner with RiFo Group was not easy, but (Kim) set the big picture, making the acquisition process much smoother."

Since 2016, when Kim was Deputy Head of Hanwha Life's Corporate Innovation Office, he has been in contact with CEO John Riadi, actively promoting Hanwha Financial Group's digital capabilities. RiFo Group also seems to have judged that cooperation with Hanwha Financial Group would help enhance the competitiveness of its domestic financial affiliates. The two groups officially joined hands in November 2022 by signing a strategic memorandum of understanding (MOU) for cooperation in finance, digital, and healthcare sectors. In February of the following year, RiFo General Insurance decided to collaborate with Carrot General Insurance, a digital insurance subsidiary of Hanwha Financial Group, to build a driving habit-linked insurance (BBI) solution. In June of the same year, Hanwha Investment & Securities, a Hanwha Life subsidiary, signed a contract to acquire Chipta Dana Securities & Asset Management, affiliated with RiFo Group, further solidifying the cooperation between the two companies. A Hanwha Life official said, "RiFo Group has solid know-how in traditional financial businesses but expects greater synergy with Hanwha Financial Group in digital new businesses and mobile-related areas," adding, "Indonesia has a population of 280 million, the fourth largest in the world, with more than half being MZ generation (Millennials + Generation Z), so the foundation is already in place."

Kim Dong-won, Chief Global Officer of Hanwha Life (left), and John Riady, CEO of Lippo Group, are shaking hands and posing for a commemorative photo at the stock purchase agreement signing event of Nobu Bank held on May 3.
[Photo by Hanwha Life]

Kim Dong-won, Responsible for the Group's Treasury, What Kind of Leadership Will He Show?

Kim, the third generation of the Hanwha owner family, is currently in the process of inheriting Hanwha Group's financial business. Hanwha Financial Group is a core affiliate that Chairman Kim Seung-yeon has nurtured as the group's 'treasury' after carrying out painful restructuring during the IMF foreign exchange crisis.

Although it is still premature to discuss affiliate separation while Chairman Kim remains active, the industry anticipates that Kim may take charge of the financial sector and become independent in the future. Some speculate that he will follow the path of Kim Nam-gu, Chairman of Korea Investment Financial Group and second generation of Dongwon Group.

Korea Investment Financial Group separated from Dongwon Group in 2004 and now oversees affiliates including securities firms, asset management companies, savings banks, and venture capital centered on Korea Investment Financial Group. Chairman Kim Nam-gu joined Hanshin Securities (formerly Dongwon Securities) as an assistant manager in 1991, gaining field experience from the ground up. He then worked in the bond department, IT headquarters, strategic planning office, and New York office, accumulating practical experience. After becoming CEO of Dongwon Securities in 2004, he acquired Korea Investment Trust Securities (now Korea Investment & Securities) within four months and merged it with Dongwon Securities, standing out in the M&A market.

Kim Dong-won also gained early field experience in IT and finance. Unlike Kim Nam-gu, who built his skills in the domestic M&A market, Kim Dong-won is achieving results overseas.

Kim Nam-gu is a 'decentralized authority' owner. He grants considerable authority to professional managers and rewards them after observing their performance over several years. The story of Yoo Sang-ho, Senior Vice Chairman of Korea Investment & Securities, holding the CEO position for a long period from 2007 to 2018, is well known. When asked why Yoo was reappointed for a long time, Chairman Kim reportedly replied, "Why change if he is doing well?" Although Kim Dong-won is not yet at the stage to exert full influence over group leadership decisions, as glimpsed during the Nobu Bank acquisition process, he appears to have a horizontal leadership style. Hanwha Life CEO Yeung Seung-joo, who took office in 2019, has been working closely with Kim for five years.